CRA announces payment deadline for 2022 tax balances
February 17, 2023
The Canada Revenue Agency has announced that the tax payment deadline for individual income taxes owed for the 2022 tax year will be Monday May 1, 2023. While the payment deadline is usually April 30, an extension to May 1 is provided by the CRA where, as is the case this year, the April 30 deadline falls on a weekend.
The May 1 payment deadline applies to all individual taxpayers, regardless of the date by which taxpayers must file their returns for 2022.
The CRA announcement of the payment deadline can be found on the Agency’s website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html.
Planning for the new First Home Savings Account
February 17, 2023
Just about a year ago, in the 2022-23 budget, the federal government announced a number of measures to help Canadians who are trying to put together a down payment for the purchase a first home. The most significant of those measures was the Tax-Free First Home Savings Account (FHSA) which, as the name implies, allows first time home buyers to save on a tax-assisted basis (within prescribed limits) toward such a purchase.
The FHSA is available to eligible taxpayers starting in the current (2023) tax year. Due to the administrative requirements of putting the new FHSA in place, it will not actually be possible to open such a plan until April 1, 2023. Notwithstanding, Finance Canada has indicated that, for the 2023 tax year, full year contribution limits will apply, regardless of when a new plan is opened during the year.
Under the program terms, any resident of Canada who is at least 18 years of age and who has not lived in a home which he or she owns in any of the current or four previous years can open an FHSA and contribute to that plan annually. Planholders will be able to contribute up to $8,000 per year to their plan, regardless of their income for that year. The $8,000 per year contribution must be made by the end of the calendar year, but planholders will be permitted to carry forward unused portions of their annual contribution limit, to a maximum of $8,000. For example, an individual who contributes $4,000 to an FHSA in 2023 would be allowed to contribute $12,000 in 2024 (representing $8,000 in contribution for 2024 plus $4,000 remaining from 2023). Regardless of the schedule on which contributions are made, there is a lifetime limit of $40,000 in contributions for each individual.
How to respond to a tax instalment notice
February 17, 2023
Sometime during the month of February, millions of Canadians will receive mail from the Canada Revenue Agency. That mail, a “Tax Instalment Reminder”, will set out the amount of instalment payments of income tax to be paid by the recipient taxpayer by March 15 and June 15 of this year.
The CRA’s decision to send an Instalment Reminder to certain taxpayers isn’t an arbitrary one. Rather, an Instalment Reminder is generated when sufficient income tax has not been deducted from payments made to that taxpayer throughout the year. Put more technically, an Instalment Reminder will be issued by the CRA where the amount of tax which was or will be owed when filing the annual tax return is more than $3,000 in the current (2023) tax year and either of the two previous (2021 or 2022) tax years. Essentially, the requirement to pay by instalments will be triggered where the amount of tax withheld from the taxpayer’s income throughout the year is at least $3,000 less than their total tax owed for 2023 and either 2021 or 2022. For residents of Québec, that threshold amount is $1,800.
CRA announces individual tax filing deadline for 2022 returns
February 11, 2023
The Canada Revenue Agency has announced that the filing deadline for individual income tax returns for the 2022 tax year will be Monday May 1, 2023. While the filing deadline is usually April 30, an extension to May 1 is provided by the CRA where, as is the case this year, the April 30 deadline falls on a Sunday.
The May 1 deadline does not apply to self-employed individuals and their spouses, who must file their return for 2022 on or before Thursday June 15, 2023.
The CRA announcement of the filing deadlines can be found on the Agency’s website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html.
March 1, 2023 deadline for making RRSP contributions for 2022
February 11, 2023
The Canada Revenue Agency has announced that the deadline for making registered retirement savings plan (RRSP) contributions which can be deducted on the return for the 2022 tax year will be Wednesday March 1, 2023.
The CRA announcement of the contribution deadline can be found on the Agency’s website at Due dates and payment dates – Personal income tax – Canada.ca, and detailed information on contributing to an RRSP is available on the same website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp.html.
CRA issues individual income tax return package for 2022
February 3, 2023
The Canada Revenue Agency (CRA) has issued the tax package to be used for the filing of individual income tax returns for the 2022 tax year. That package, which includes both the income tax return and the guide, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package.html.
Individuals who do not wish to download the tax package from the website can order hard copy to be sent to them by mail. Such orders can be placed online at https://apps.cra-arc.gc.ca/ebci/cjcf/fpos-scfp/pub/rdr?searchKey=2022+Package or by calling the CRA at 1-855-330-3305 (automated service) or 1-800-959 8281 (to reach a customer service agent).
NETFILE service for 2022 returns available February 20
February 3, 2023
The Canada Revenue Agency (CRA) has announced that its NETFILE service for filing of federal individual income tax returns for the 2022 tax year will be available on Monday February 20, 2023.
Information on eligibility for NETFILE and how to use the service can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview.html. The announcement of the NETFILE opening date for the 2023 tax filing season is available on the same website at Want to avoid delays at tax time? Use our digital services! – Canada.ca.
About Expert Fiscaliste Tax Preparation
Maximize your tax refund this year with Expert Fiscaliste tax services for your T1 and TP-1 2022 Income Tax Returns, call or text us at 514-954-9031 or send us a email will@expert-fiscaliste.ca or visit our web site. In addition, we offer an important advantage with CRA and Revénu Quebec being your Authorized Representative for all taxation years. We also provide a secure portal to securely share documents, data and reports. Contact us now at 514-954-9031, we are accepting new 2022 clients for a limited time.
